The financial statements of adidas (DEU) and Puma (DEU) are presented in Appendices B and C, respectively. The complete annual reports, including the notes to the financial statements, are available online.
Instructions
Use the companies' financial information to answer the following questions.
a. Identify the changes in accounting policies reported by Puma during the 2 years covered by its income statements (2014-2015). Describe the nature of the change and the year of change.
b. Identify the changes in accounting policies reported by adidas during the 2 years covered by its income statements (2014-2015). Describe the nature of the change and the year of change.
c. For each change in accounting policy by adidas and Puma, identify, if possible, the cumulative effect of each change on prior years and the effect on operating results in the year of change.